March 30, 2010
In a very significant event, both for the industry and for UnitedLex, BT (British Telecom) has announced that it is transferring the duties and personnel of its captive legal services unit in India to UnitedLex. (See Full Disclosure below.)
BT, a Fortune Global 500 company that operates in 170 countries, set up a subsidiary legal services unit (a “captive” in industry parlance) in Gurgaon, India five years ago. We know from the very nature of its business that BT is familiar with offshoring generally, and, because it ran a captive legal services center for five years, we also know that it is intimately familiar with legal services offshoring. According to David Eveleigh, General Counsel for BT Global Services, the announced reason to divest was to “gain access to an established Legal Process Outsourcer who can offer industry best practices and provide global scalability.” The deal is important for the industry because it suggests that BT’s experience demonstrated the value of outsourcing legal services, even if it has reconsidered its position in the captive vs. vendor offshoring dilemma. Read the rest of this entry »
February 25, 2010
A Law Society Gazette profile of CPA Global provides some insight into the operations of an LPO in India. See A Glimpse of LPO in India, for a look at Pangea3 operations.
February 15, 2010
Practitioners in the legal services outsourcing market can learn a great deal from our figurative forefathers in the broader Business Process Outsourcing (“BPO”) market. The dean of BPO analysts and bloggers is Phil Fersht, who writes Horses for Sources. In his recent post, Have some outsourcing vendors already thrown in the innovation towel?, Phil suggests that, “While some [BPO] vendors are talking a big game regarding how they intend to broaden their outsourcing services and consulting Read the rest of this entry »
February 5, 2010
Acquisitions, alliances, and recapitalizations have been hot topics recently among LPO vendors and the broader legal services industry. Industry competitors are conducting transactions to strengthen and expand existing services, and industry investors are creating new entities and recapitalizing existing ones to enter the market with fuller offerings. Experienced managers recognize that transactions are a normal part of business operations, but the recent increase in activity suggests that the long-anticipated consolidation in the legal services industry is underway. Read the rest of this entry »
January 12, 2010
(click here to expand the diagram)
In a recent post (New Locations Offer a New Twist on Offshoring Legal Services), I highlighted the growing geographic breadth among Legal Process Outsourcing (LPO) vendors. Geographic breadth helps vendors distribute their operational risks and costs while providing access to a wide range of talent. Another measure of a vendor’s “breadth” is the range of services it offers.
As illustrated in the diagram above, vendors providing LPO services cluster into three major categories along a wide “services breadth” spectrum. They range from very small companies often focused on a single LPO service area (or those with only a tangential LPO offering), to others offering a full set of LPO services but little else, to those offering not only LPO services but a suite of outsourcing services that may include other Knowledge Process Outsourcing (KPO) services (LPO is considered a specific type of KPO service) or even generalized Business Process Outsourcing (BPO) or Information Technology (IT) outsourcing services. Read the rest of this entry »
October 29, 2009
In the interview sponsored by Legal Week, Professor Richard Susskind evokes really useful insights from Rio Tinto managing attorney Leah Cooper into both the motivation for LPO and the process of implementing it with CPA Global.
October 28, 2009
If you are thinking about working with a Legal Process Outsourcing (LPO) vendor, you will generally do well to evaluate vendors with the assumption that your relationship with the selected vendor(s) will be a long-term relationship and not simply a single transaction. Even if you are seeking a vendor for a discrete instance of work (e.g., a privilege review of documents for a single piece of litigation), you are likely to have recurring instances of similar work, and may want to outsource them again in the future. By investing the resources up front to make sure that the right vendor is selected, you can save potential future costs by (i) minimizing the likelihood of incompetent or otherwise inappropriate vendors, (ii) having selected an alternative vendor in the event a primary vendor is conflicted out or otherwise unavailable, and (iii) having selected a vendor that has the desire and ability to grow with your needs. In forming a relationship with a vendor, I generally recommend that clients establish a dedicated team at the vendor to service their needs.
Read the rest of this entry »